Trinidad And Tobago Indicates FATCA Law Impasse
by Jason Gorringe, Lowtax.net, London
16 September, 2016
The Trinidad and Tobago Government has acknowledged it does not have sufficient sway to adopt legislation to comply with the Foreign Account Taxpayer Compliance Act.
FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held abroad at foreign financial institutions (FFIs) by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.
The legislation requires a special majority in the territory's Parliament – a 3/5 majority – which the present government does not have. The Government currently has 23 members in the House of Representatives, but 26 votes are required to pass the Bill.
Earlier, the Government said it is seeking to resolve the matter by holding discussions with the opposition, which has refused to vote on the bill. The Government is pushing for the passage of the legislation before the end of the 2015/16 parliamentary session on September 22.
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